Investing.com - Bitcoin and other major cryptocurrency prices traded higher on Wednesday despite reports that Japan is considering demanding crypto exchanges to provide information on their clients who have been suspected of tax evasion.
Bitcoin gained 2.1% to $3,916.8 by 12:31 AM ET (05:31 GMT) on the Investing.com index, while Ethereum was up 1.2% to $108.54.
XRP rose 3.1% to $0.35233 on the Poloniex exchange and Litecoin gained 2.4% to $31.017 on the Bitifinex exchange.
Digital coins have fallen dramatically in recent weeks, with Bitcoin trading at 80% less than its value a year ago. News of regulatory scrutiny and a hard fork in Bitcoin cash are some of the reasons analysts have said volatility has returned to the market.
Cryptovest reported on Wednesday that Japan is considering empowering the National Tax Agency (NTA) to demand crypto exchanges to provide information regarding their clients who have been suspected of tax evasion. Such information includes names, activity log, individual identification numbers, and wallet addresses.
The article said more than 300 traders declared minimum earnings of 100 million yen from crypto investments in 2017.
Citing government sources, the article noted that “a significant number” of individuals did not properly disclose their profits from cryptocurrency transfers and activities.
In other news, the latest digital exchange ErisX raised $27.5 million from investors including Fidelity and Nasdaq ventures, Reuters reported. The exchange is expected to trade bitcoin, litecoin, ether and futures next year, pending regulatory approval.